Flexible Spending Accounts (FSAs) are among the most valuable benefits an employer can offer, especially for fire fighters who strive to balance demanding jobs with family responsibilities. These accounts enable you to set aside money from your paycheck before taxes to pay for eligible health care and daycare expenses, effectively reducing your taxable income and saving money in the long run.
The City of Seattle provides Seattle fire fighters and their families with two types of Flexible Spending Accounts: the Health Care FSA and the Daycare FSA. Both FSAs are administered by Navia Benefit Solutions. Here’s what you need to know about each of these options.
Health Care FSA
A Health Care FSA allows you to set aside pre-tax dollars—up to an annual maximum of $3,200—to cover eligible medical expenses not reimbursed by your regular health insurance. This includes expenses such as copays, deductibles, and orthodontic costs that exceed your regular plan coverage limits. Keep in mind, health insurance premiums aren’t eligible since they’re already deducted pre-tax.
One significant advantage of the Health Care FSA is the rollover provision, which allows up to $640 of unused funds set aside during the current benefit year to roll over into the next benefit year. However, any balance above this limit, or balances below $120 without re-enrollment in the following year, will be forfeited. This makes careful planning critical.
Please note that the numbers above are based on the IRS guidelines for the 2025 tax year and may change once the guidelines for the 2026 tax year are released.
Daycare FSA
The Daycare FSA is designed for fire fighters with dependents, allowing you to allocate up to $5,000 annually per household for eligible daycare expenses. This can include daycare costs for children, spouses with disabilities, or dependent parents while you and your spouse or domestic partner are employed or attending school full-time.
Unlike the Health Care FSA, the Daycare FSA does not offer a rollover. Unspent funds at the end of the year are forfeited, so accurately estimating your daycare expenses is crucial.
Please note that the numbers above are based on the IRS guidelines for the 2025 tax year and may change once the guidelines for the 2026 tax year are released.
Calculating Your Annual Contributions
Deciding how much to contribute to your FSAs each year can be straightforward if you approach it thoughtfully:
- Review Past Expenses: Look at previous years’ medical and daycare expenditures to estimate your future costs.
- Plan Ahead: Factor in known expenses for the upcoming year, including planned medical procedures, orthodontia, daycare arrangements, or changes in family dynamics such as childbirth or a child reaching school age.
- Estimate Conservatively: Because the Daycare FSA has no rollover and the Health Care FSA rollover is capped, it’s best to contribute slightly less than your anticipated total costs to avoid forfeitures.
For instance, if your annual daycare expense is consistently around $4,800, allocating this amount ensures you’re maximizing tax savings without risking a loss.
Enrollment and Learning More
Enrollment is simple, and the City of Seattle provides multiple opportunities to participate:
- Within 30 days of your hire date via Workday.
- During the annual Open Enrollment period.
- Within 30 days following a qualifying life event, such as marriage, divorce, childbirth, adoption, or significant changes in employment status affecting your daycare needs.
To effectively manage your account, Navia Benefit Solutions provides convenient online tools. Create your account at www.naviabenefits.com using the company code CS1. You can use the website to submit claims, monitor your balance, and manage your Navia Benefits Card—a handy debit card that allows direct access to your Health Care FSA funds without waiting for reimbursement.
Additionally, all City of Seattle employees have access to Kinside, an online platform that offers childcare options, including preschools, after-school programs, and summer camps. Kinside makes the payment process easier by allowing online payments directly from your Daycare FSA.
Further Assistance
If you have questions about your FSA options, visit the Benefits Unit’s webpage for Local 27 Fire Fighters or contact the Fire Department’s Benefits representative, Christa Williams ([email protected] or 206-386-1468). Your FSA options will also be included in the 2026 Employee Benefits Guide for Employees Who are Members of Seattle Fire Fighters Union Local 27, which will be available soon.
By strategically utilizing the City of Seattle’s Flexible Spending Accounts, you can reduce your tax burden, manage healthcare expenses more effectively, and plan more comfortably for your family’s care needs, ultimately ensuring increased financial peace of mind.